Apria Healthcare — Investor Presentation (January 2008)
16 slides from Apria Healthcare's investor presentation, Jan 8, 2008
Slide 1: Apria Healthcare
( * APRIA HEALTHCARE January 2008
Slide 2: Forward-looking statements
This presentation may contain statements regarding anticipated future developments that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Results may differ materially as a result of the risk factors included in the Company's filings with the
Slide 3: Apria Overview
Apria Overview Leading national provider of integrated home healthcare products and services Serving patients in all 50 states Over 550 locations (does not include overlapping locations) ~12,500 Employees > 2 million patients Comprehensive range of services address growing U.S. markets Home IV / Spe
Slide 4: Core Homecare Services
Core Homecare Services Clinical Infusion / Specialty Pharmaceutical Services ~38% of revenues* IV medication, treatment and high-tech support services at home Centralized specialty pharmaceutical distribution to all 50 states CTI Network - clinical trials division >82 Pharmacies nationwide post-inte
Slide 5: Government Regulatory Update
Government Regulatory Update Home Oxygen Therapy / Equipment Rental Cap DRA of 2005 contained a provision to cap oxygen equipment rental payments at 36 months for Medicare patients, regardless of length of medical need Requires mandatory transfer of ownership of equipment to patients First group of
Slide 6: Coram Acquisition
Coram Acquisition Apria closed the acquisition of Coram, Inc. ("Coram") on December 3, 2007 $350 million cash 0.7x LTM revenues Formal integration process well underway Expected synergies of $10 mm in 2008E & $20 mm in 2009E
Slide 7: Infusion and Specialty Market Growth
Infusion and Specialty Market Growth Traditional Home Infusion Therapy Market $4 to $5 billion, growing 4-6 % annually Includes broad range of therapies to treat acute, chronic and terminal conditions Anti-infectives, Total Parenteral Nutrition (TPN), Enteral Nutrition, Pain Management, Chemotherapy
Slide 8: Strategic Rationale for Acquisition
Broad product and service offering attractive to referral sources and payors Able to work with single provider for multiple services Creates the premier specialty infusion services provider: >100,000 infusion patients cared for annually 1,100 clinicians Bolsters national footprint / creates alternat
Slide 9: Coram Overview
Coram Overview ~$495 million revenues for LTM ending September 30, 2007 72 branch locations across the country ~2,100 employees, including nearly 1,000 staff nurses and pharmacists ~17,000 patients served every month Traditional site of care Operates in a similar manner to Apria "Core" therapies 51
Slide 10: Apria's Diversified Payor Mix
Apria's Diversified Payor Mix Payor mix is heavily weighted towards non-governmental sources Limited concentration, no managed care contract represents > 9% of revenues Both Apria and Coram contract with substantially all of the national accounts Positioned to benefit from growth of Medicare Advanta
Slide 11: Leading Market Position with Broad National Footprint
Leading Market Position with Broad National Footprint #1 in home infusion following Coram acquisition Second largest home respiratory services provider #1 in complex ventilation care, CPAP/BiPAP and ambulatory oxygen systems #2 in home respiratory therapy #1 in home medical equipment IL CA NV AZ UT
Slide 12: Financial Overview
Financial Overview
Slide 13: Recent Operating Results
Recent Operating Results Total Revenue $1,126.3 $1,126.3 $1,179.5 +4.7% SD&A % of Revenue 53.2% 53.2% 53.2% - EBITDA $212.6 $212.6 $213.6 +0.5% Net Income $53.9 $53.9 $61.2 +13.6% Diluted Net Income / Share Free Cash Flow $1.26 $99.2 $1.26 $99.2 $1.39 $115.9 +10.3% +16.8% 9 Months Ended 9/30/2006 9
Slide 14: Productivity Metrics
Productivity Metrics 12/31/2005 12/31/2006 9/30/2007 East 57 49 47 12/31/2005 12/31/2006 9/30/2007 East 47 45 55 12/31/2005 12/31/2006 9/30/2007 East 77 60 56 Receivable Days Payable Days Days Inventory on Hand
Slide 15: Favorable Industry Dynamics
Favorable Industry Dynamics Aging demographics Increasing life expectancy 51 million seniors, increasing to 76 million by 2027 Historically insulated from economic slowdowns Technology improvements Earlier patient discharge Medical devices more adaptable for use in the home Cost-effective alternativ
Slide 16: Apria is Positioned to Win
Apria is Positioned to Win Leading franchise with broad national footprint Leading position in infusion therapy Diversified payor mix Attractive business mix Achieving operating expense efficiency
Apria Healthcare Group — Investor Presentation (January 2008) on 6ix